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New AFASA Anti-Fraud Law Gets BSP Approval
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The Bangko Sentral ng Pilipinas (BSP) has approved the recent passage of Republic Act No. 12010, also known as the Anti-Financial Account Scamming Act (AFASA), designed to combat financial cybercrimes, protect the interests of financial consumers, and preserve the integrity of the financial system.
Eli M. Remolona, Jr.
“We express our full support for the new Anti-Financial Account Fraud Law. This will help us strengthen consumer protection and promote trust in the Philippine financial system,”
said BSP Governor Eli M. Remolona, Jr.
AFASA, formally titled “Act Defining and Penalizing Financial Account Fraud and Other Offences and Providing for Enforcement Mechanisms,” prohibits and punishes financial crimes, such as money muling, social engineering schemes, and economic sabotage.
The law gives power to the BSP to investigate violations, request warrants and orders for cybercrime, and seek assistance from the National Bureau of Investigation and the Philippine National Police in their investigations.
The law also grants the BSP limited authority to examine and investigate bank accounts, e-wallets, and other financial accounts implicated in prohibited activities.
Financial institutions are allowed to withhold disputed funds under certain conditions and initiate a coordinated review process to validate the transactions in question.
Furthermore, AFASA imposes on BSP-supervised institutions the responsibility to implement adequate risk and fraud management systems to protect their customers’ financial accounts.
It requires government agencies, banks, financial institutions, the private sector and other stakeholders to establish cooperation mechanisms to ensure effective prosecution of cases and enforcement of the law.
This legislation is in line with the BSP’s objectives to promote a sound financial system and an efficient, safe and secure digital payments ecosystem that supports the diverse needs and capabilities of individuals and businesses.
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